MUMBAI, AUG 31: Housing Development Finance Corporation (HDFC) has reduced interest rate by one per cent to 13.5 in the Rs 5 lakh to Rs 10 lakh bracket. Other housing finance companies are expected to join the rate war initiated by HDFC as home loans are fast becoming cheaper.HDFC has also decided to introduce floating interest rate which would be 13.5 per cent for loans of Rs 10 lakh and below and 14.5 per cent for the Rs 10-lakh and above category. The loans would be reset loans every six months, benchmarking the interest rates to its PLR.
